-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, HI+hJBktYUED7eX2t7CpKJb/74ry1ccPh7CIEF2xsIrKqU59Cfyi1ouNPN/7w7vH D3n7BWPX/tlvhlDmBCmwcw== 0000730464-03-000013.txt : 20030826 0000730464-03-000013.hdr.sgml : 20030826 20030826165256 ACCESSION NUMBER: 0000730464-03-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20030819 ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20030826 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DEVRY INC CENTRAL INDEX KEY: 0000730464 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-EDUCATIONAL SERVICES [8200] IRS NUMBER: 363150143 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13988 FILM NUMBER: 03867005 BUSINESS ADDRESS: STREET 1: ONE TOWER LN STREET 2: SUITE 1000 CITY: OAKBROOK TERRACE STATE: IL ZIP: 60181 BUSINESS PHONE: 6305717700 MAIL ADDRESS: STREET 1: ONE TOWER LANE CITY: OAKBROOK STATE: IL ZIP: 60181 8-K 1 ern8k.txt FORM 8-K FOR EARNINGS RELEASE 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) August 19, 2003 DeVRY INC. ------------------------------------------------------ (Exact name of registrant as specified in its charter) DELAWARE 012751 36-3150143 - -------------------------------------------------------------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) ONE TOWER LANE, OAKBROOK TERRACE, IL 60181 - -------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (630)571-7700 Total number of pages: 11 2 DEVRY INC. FORM 8-K INDEX Page No. Item 9 - Regulation FD Disclosure 3-10 Signatures 11 3 Item 9 -Regulation FD Disclosure - -------------------------------- On August 19, 2003, DeVry Inc. issued a press release and other financial information. The full text of that press release and the other financial information is as follows: Contacts: For Immediate Release Joan Bates Investor Relations 630-574-1949 Jonelle Niffenegger Media Relations 630-706-3212 DeVry Inc. Reports Fiscal 2003 Fourth-Quarter, Year-End Results and Summer Term Enrollment OAKBROOK TERRACE, Ill., August 19, 2003 -- DeVry Inc. (NYSE: DV), an international higher education company, today reported financial results for the fourth quarter and year-end of fiscal 2003, and student enrollment for the summer term. Financial Results - ----------------- Revenues for the full year ended June 30, 2003, were $679.6 million, an increase of 4.9 percent compared with $648.1 million in the prior year. Fourth quarter revenues were $174.4 million, an increase of 7.6 percent compared with $162.0 million in the same quarter last year. Net income for the year was $61.1 million or $0.87 per share (diluted), a decline of 8.8 percent compared with $67.1 million or $0.95 per share (diluted) for fiscal year 2002. Full year net income includes certain non-recurring income tax benefits totaling $8.1 million or approximately $0.12 per share recognized in the second quarter. Net income for the fourth quarter was $12.1 million, or $0.17 per share, down 25.0 percent compared with $16.2 million, or $0.23 per share in the year ago period. Included in fourth quarter financial results are pretax charges of approximately $2.6 million related to workforce reductions in both eastern Canada and the United States. Dennis J. Keller, chairman and co-chief executive officer, said, "Earnings in the fourth quarter were also affected by previous shortfalls in undergraduate campus-based enrollment at DeVry University and, especially, the underperformance of our Canadian operations. We continued to adjust our cost base to reflect the smaller student population and as a result incurred staff severance expenses during the period." 4 -more- During the fourth quarter, DeVry completed the acquisition of Ross University, which provides Doctor of Medicine and Doctor of Veterinary Medicine degree programs. Ronald L. Taylor, president and co-chief executive officer, said, "We are extremely pleased with the integration of Ross University into DeVry and believe that the opportunities in this market segment are very attractive. We particularly look forward to exploring the synergies between Ross, DeVry University and Becker Conviser Professional Review." Summer Enrollment - ----------------- DeVry University announced today that new undergraduate student enrollment for the 2003 summer term increased by 2.5 percent to 10,607, compared with 10,345 in the previous year. This increase compares to a 3.6 percent decline in new students in the 2003 spring term. New undergraduate students at the company's U.S. campuses increased 4.5 percent to 10,252 compared with 9,806 in the prior year. The total number of enrolled undergraduate students was 41,075, a decline of 5.2 percent compared with 43,342 a year ago. This compares to a decline of 6.0 percent in total enrollments for the 2003 spring term. At DeVry University's Keller Graduate School of Management, the number of coursetakers for the 2003 July term increased 15.5 percent to 9,483 compared with 8,209 in the June term last year. The total number of students enrolled at Ross University for the term beginning in May was 2,852 compared to 2,552 last year, an increase of 11.8 percent. "We are pleased to see strong student interest in our business degree programs, both at DeVry University Centers and online, and the beginnings of renewed interest in technology programs. In addition, solid enrollment results in the May term at Ross University reflect improved marketing efforts, which capitalize on its strong brand equity," Taylor said. "In light of the growing demand for both medical doctors and veterinarians, we plan to expand capacity at these campuses to meet this market need." In fiscal 2003, new DeVry University Centers were opened in Plano, Texas; Valley Forge, Pa.; and the Cobb-Galleria area of Atlanta. New campuses were opened in Philadelphia; Miramar, Fla.; and Denver. A new center offering graduate degree programs opened in Manhattan in April. The Company expects to open six to eight new DeVry University Centers in fiscal 2004 in addition to its Houston campus, which will open in November. DeVry University currently operates 66 locations, including 25 campuses, 40 centers and DeVry University online. 5 -more- DeVry Inc. will hold a conference call to discuss these results on August 19, 2003, at 4:30 p.m. eastern time. For those who wish to participate, please dial 800-901-5218 (domestic) or 617-786-4511 (international). Investors may also participate by live web cast by visiting www.investor.devry.com. A telephone replay of the earnings call will be available until August 29, 2003 by dialing 888-286-8010 (domestic) or 617-801-6888 (international), conference code 31649171. DeVry Inc. (NYSE: DV) is the holding company for DeVry University, Ross University and Becker Conviser Professional Review. DeVry University offers associate, bachelor's and master's degree programs in technology, business and management. Ross University is focused exclusively on professional medical and veterinary education awarding both doctor of medicine and doctor of veterinary medicine degrees. Becker Conviser Professional Review is a leading provider of preparatory coursework for the certified public accountant, certified management accountant and chartered financial analyst exams. DeVry Inc. is based in Oakbrook Terrace, Ill. For more information about the company, visit http://www.devry.com. Certain information contained in this release may constitute forward- looking statements pursuant to the safe harbor provision of the Private Securities Litigation Reform Act of 1995. Such statements may involve risks and uncertainty that could cause actual results to differ materially from the forward-looking statements. Potential risks and uncertainties include, but are not limited to, dependence on student financial aid, state and provincial approval and licensing requirements, and the other factors detailed in the company's Securities and Exchange Commission filings, including those discussed under the heading "Risk Factors" in the Company's Registration Statement on Form S-3 (No. 333-22457) filed with the SEC. 6 DeVry Inc. Fourth Quarter Ended June 30: - ---------------------------- Fiscal Year Fiscal Year 2003 2002 --------------------------- Revenues $174,395,000 $162,013,000 Net Income 12,149,000 16,191,000 Earnings Per Common Share Basic $0.17 $0.23 Diluted $0.17 $0.23 Number of Common Shares Basic 69,986,000 69,894,000 Diluted 70,548,000 70,517,000 Fiscal Year Ended June 30: - ------------------------- Fiscal Year Fiscal Year 2003 2002 --------------------------- Revenues $679,579,000 $648,134,000 Net Income 61,148,000 67,055,000 Earnings Per Common Share Basic $0.87 $0.96 Diluted $0.87 $0.95 Number of Common Shares Basic 69,942,000 69,830,000 Diluted 70,336,000 70,594,000 June 30: - ------- Actual Shares Outstanding 70,021,500 69,898,500 7 DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
June 30, 2003 2002 --------- --------- ASSETS: Current Assets: Cash and Cash Equivalents $108,699 $ 59,685 Restricted Cash 14,052 19,264 Accounts Receivable, Net 24,275 26,054 Inventories 4,315 4,907 Deferred Income Taxes 12,813 5,448 Prepaid Expenses and Other 5,533 2,469 ------- ------- Total Current Assets 169,687 117,827 ------- ------- Land, Buildings and Equipment: Land 59,888 58,928 Buildings 188,320 174,344 Equipment 207,405 173,115 Construction In Progress 12,662 1,626 ------- ------- 468,275 408,013 Accumulated Depreciation (182,921) (150,386) ------- ------- Land, Buildings and Equipment, Net 285,354 257,627 ------- ------- Other Assets: Intangible Assets, Net 103,330 35,692 Goodwill 280,979 42,391 Deferred Income Taxes - 1,801 Perkins Program Fund, Net 11,291 10,180 Other Assets 6,003 2,110 ------- ------- Total Other Assets 401,603 92,174 ------- ------- TOTAL ASSETS $856,644 $467,628 ======= =======
8 DEVRY INC. CONSOLIDATED BALANCE SHEETS (Dollars in Thousands)
June 30, 2003 2002 --------- --------- LIABILITIES: Current Liabilities: Accounts Payable $ 34,094 $ 36,284 Accrued Salaries, Wages and Benefits 30,791 27,595 Accrued Expenses 31,767 11,643 Advance Tuition Payments 10,568 15,883 Deferred Tuition Revenue 16,291 12,287 ------- ------- Total Current Liabilities 123,511 103,692 ------- ------- Other Liabilities: Revolving Loan 165,000 - Senior Debt 125,000 - Deferred Income Taxes 13,049 - Deferred Rent and Other 14,417 10,390 ------- ------- Total Other Liabilities 317,466 10,390 ------- ------- TOTAL LIABILITIES 440,977 114,082 ------- ------- COMMITMENTS & CONTINGENCIES SHAREHOLDERS' EQUITY: Common Stock, $0.01 Par Value, 200,000,000 Shares Authorized,70,021,513 and 69,898,540 shares Outstanding at June 30, 2003 and 2002, Respectively 701 700 Additional Paid-in Capital 67,288 66,345 Retained Earnings 346,975 285,827 Accumulated Other Comprehensive Income 703 674 ------- ------- TOTAL SHAREHOLDERS' EQUITY 415,667 353,546 ------- ------- TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $856,644 $467,628 ======= =======
9 DEVRY INC. CONSOLIDATED STATEMENTS OF INCOME (Dollars in Thousands Except for Per Share Amounts)
For The Year Ended June 30, -------------------------------- 2003 2002 2001 -------- -------- -------- REVENUES: Tuition $628,326 $600,400 $523,995 Other Educational 50,810 47,181 43,012 Interest 443 553 1,170 ------- ------- ------- Total Revenues 679,579 648,134 568,177 ------- ------- ------- COSTS AND EXPENSES: Cost of Educational Services 366,075 347,986 304,532 Student Services and Administrative Expense 225,767 188,712 167,330 Interest Expense 1,280 807 400 ------- ------- ------- Total Costs and Expenses 593,122 537,505 472,262 ------- ------- ------- Income Before Income Taxes 86,457 110,629 95,915 Income Tax Provision 33,459 43,574 38,139 Non-recurring Tax Benefits (8,150) - - ------- ------- ------- NET INCOME $ 61,148 $ 67,055 $ 57,776 ======= ======= ======= EARNINGS PER COMMON SHARE Basic $0.87 $0.96 $0.83 ======= ======= ======= Diluted $0.87 $0.95 $0.82 ======= ======= =======
10 DEVRY INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in Thousands)
For The Year Ended June 30, 2003 2002 2001 --------- -------- -------- CASH FLOWS FROM OPERATING ACTIVITIES: Net Income $ 61,148 $ 67,055 $ 57,776 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 37,758 32,725 28,132 Amortization 2,574 811 3,904 Provision for Refunds and Uncollectible Accounts 34,501 34,249 29,663 Deferred Income Taxes 6,882 2,630 (4,321) Loss on Disposals and Adjustments to Land, Buildings and Equipment 263 188 137 Changes in Assets and Liabilities, Net of Effects from Acquisitions of Businesses: Restricted Cash 6,206 1,220 (1,089) Accounts Receivable (23,633) (34,525) (29,719) Inventories 592 (8) 1,492 Prepaid Expenses And Other (1,012) 677 (1,687) Perkins Program Fund Contribution and Other (1,114) 193 (2,374) Accounts Payable (4,074) 1,711 2,746 Accrued Salaries, Wages, Expenses and Benefits 2,061 5,363 3,405 Advance Tuition Payments (6,997) 1,704 (1,328) Deferred Tuition Revenue (16,904) 1,330 862 ------- ------- ------ NET CASH PROVIDED BY OPERATING ACTIVITIES 98,251 115,323 87,599 ------- ------- ------ CASH FLOWS FROM INVESTING ACTIVITIES: Capital Expenditures (43,762) (85,873) (76,933) Payments for Purchases of Businesses, Net of Cash Acquired (295,908) - (8,572) ------- ------ ------ NET CASH USED IN INVESTING ACTIVITIES (339,670) (85,873) (85,505) ------- ------ ------ CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from Exercise of Stock Options 404 1,068 982 Proceeds from Revolving Credit Facility 165,000 55,000 24,000 Repayments Under Revolving Credit Facility - (55,000) (24,000) Proceeds from Senior Note Issuance 125,000 - - ------- ------ ------ NET CASH PROVIDED BY FINANCING ACTIVITIES 290,404 1,068 982 Effects of Exchange Rate Differences 29 (46) 286 ------- ------ ------ NET INCREASE IN CASH AND CASH EQUIVALENTS 49,014 30,472 3,362 Cash and Cash Equivalents at Beginning of Year 59,685 29,213 25,851 ------- ------ ------ Cash and Cash Equivalents at End of Year $108,699 $ 59,685 $29,213 ======= ====== ====== SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION Interest Paid During the Year $662 $807 $324 Income Taxes Paid During the Year, Net 17,373 42,486 38,859
11 Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. DEVRY INC. ---------- (REGISTRANT) Date: August 19, 2003 /s/Dennis J. Keller ------------------- Dennis J. Keller Chairman Date: August 19, 2003 /s/Norman M. Levine -------------------- Norman M. Levine Senior Vice President and Chief Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----